false000168274500016827452024-08-082024-08-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 8, 2024

 

VERRA MOBILITY CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware	1-37979	81-3563824
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

 

1150 N. Alma School Road Mesa, Arizona (Address of principal executive offices)	85201 (Zip Code)

(480) 443-7000

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

(Title of each class)		(Trading symbol)		(Name of each exchange on which registered)
Class A common stock, par value $0.0001 per share		VRRM		Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

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Item 2.02 Results of Operations and Financial Condition.

On August 8, 2024, Verra Mobility Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

The Company will host a conference call and live webcast to discuss its second quarter 2024 financial results on August 8, 2024, at 5:00 p.m. Eastern time. Live and archived webcasts of the presentation will also be available on the Company’s investor relations website at ir.verramobility.com, although the Company reserves the right to discontinue that availability at any time.

On August 8, 2024, the Company posted supplemental investor materials on its investor relations website. The Company uses its investor relations website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company’s investor relations website in addition to following its press releases, SEC filings and public conference calls and webcasts.

The information being furnished pursuant to Item 2.02, including Exhibit 99.1, and Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit Number		Description of Exhibits
99.1		Press Release, dated August 8, 2024, issued by Verra Mobility Corporation.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: August 8, 2024	Verra Mobility Corporation
	By:	/s/ Craig Conti
	Name:	Craig Conti
	Title:	Chief Financial Officer

 

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Verra Mobility Announces Second Quarter 2024 Financial Results

 

 

MESA, Ariz., August 8, 2024 /PRNewswire/ – Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the second quarter ended June 30, 2024.

 

“We delivered an outstanding second quarter, highlighted by strong revenue and earnings growth,” said David Roberts, President and CEO, Verra Mobility. “Travel demand remains robust driving continued strength in Commercial Services and increasing demand for automated traffic enforcement is driving strong performance in Government Solutions. Moreover, we are seeing a strong and growing bid pipeline for automated enforcement programs in our Government Solutions business. Based on our first half financial performance and anticipated outlook for the remainder of the year, we are reaffirming our full year guidance.”

Second Quarter 2024 Financial Highlights

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We report our results of operations based on three operating segments:

Second Quarter 2024 Segment Detail

Liquidity: As of June 30, 2024, cash and cash equivalents were $122.0 million, and we generated $40.0 million in net cash provided by operating activities for the three months ended June 30, 2024.

Net Debt and Net Leverage: As of June 30, 2024, Net Debt was $928.1 million and Net Leverage was 2.4x, as compared to $918.3 million and 2.5x in the year ended December 31, 2023.

Share Repurchases

In October 2023, our Board of Directors authorized a new share repurchase program for up to an aggregate amount of $100.0 million of our outstanding shares of Class A Common Stock over an 18-month period in open market, accelerated share repurchase or privately negotiated transactions. On June 6, 2024, we entered into a share repurchase

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agreement with a stockholder, pursuant to which we repurchased, directly from the stockholder, 2.0 million shares of our Class A Common Stock for an aggregate purchase price of $51.5 million. The repurchased shares were subsequently retired. As of June 30, 2024, approximately $48.5 million remains available under our authorized share repurchase program.

2024 Full Year Guidance

Any guidance that we provide is subject to change as a variety of factors can affect actual operating results. Certain of the factors that may impact our actual operating results are identified below in the safe harbor language included within Forward-Looking Statements of this press release.

Based on our second quarter results and our outlook for the remainder of the year, we are reaffirming guidance as provided in our first quarter 2024 update.

Underlying Assumptions for 2024 Full Year Guidance

Conference Call Details

Date: August 8, 2024

Time: 5:00 p.m. Eastern Time

U.S. and Canadian Callers Dial-in: 1-800-717-1738

Outside of U.S. and Canada Dial-in: 1-646-307-1865 for international callers

Request a return call: Available by clicking on the following link and requesting a return call: callme.viavid.com

Webcast Information: Available live in the “Investor Relations” section of our website at http://ir.verramobility.com.

An audio replay of the call will also be available until 11:59 p.m. ET on August 22, 2024, by dialing 1-844-512-2921 for the U.S. or Canada, and 1-412-317-6671 for international callers and entering passcode 1122452. In addition, an archived webcast will be available in the “News & Events” section of the Investor Relations website at http://ir.verramobility.com.

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A copy of the earnings call presentation will be posted to our website.

About Verra Mobility

Verra Mobility is a leading provider of smart mobility technology solutions that make transportation safer, smarter and more connected. We sit at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data and people to enable safe, efficient solutions for customers globally. Our transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility and support healthier communities. We also solve complex payment, utilization and compliance challenges for fleet owners and rental car companies. We are headquartered in Arizona, and operate in North America, Europe, Asia and Australia. For more information, please visit www.verramobility.com.

Forward-Looking Statements

This press release contains forward-looking statements which address our expected future business and financial performance, and may contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,” “should,” “will” or similar expressions. Forward-looking statements include statements regarding the changes and trends in the market for our products and services, expected operating results and metrics, such as revenue growth, expansion plans and opportunities, 2024 full year guidance, including expected total revenue, Adjusted EBITDA, Adjusted EPS, Adjusted Free Cash Flow and Net Leverage, and the underlying assumptions for the 2024 full year guidance, including expected weighted average fully-diluted share count, effective tax rate and cash taxes, expected depreciation and amortization, expected interest expense, net and total net cash interest, expected change in working capital and expected purchases of installation and service parts and property and equipment. Forward-looking statements involve risks and uncertainties and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to, customer concentration in our Commercial Services and Government Solutions segments; risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits and investigations; decreases in the prevalence or political acceptance of, or an increase in governmental restrictions regarding, automated and other similar methods of photo enforcement, parking solutions or the use of tolling; our ability to successfully implement our acquisition strategy or integrate acquisitions; failure in or breaches of our networks or systems, including as a result of cyber-attacks or other incidents; risks and uncertainties related to our international operations/our ability to develop and successfully market new products and technologies into new markets; our failure to acquire necessary intellectual property or adequately protect our intellectual property; our ability to manage our substantial level of indebtedness; our ability to maintain an effective system of internal controls, including our ability to remedy our material weakness on a timely basis; our ability to properly perform under our contracts and otherwise satisfy our customers; decreased interest in outsourcing from our customers; our ability to keep up with technological developments and changing customer preferences; our ability to compete in a highly competitive and rapidly evolving market; risks and uncertainties related to our share repurchase program; risks and uncertainties related to litigation, disputes and regulatory investigations; our reliance on specialized third-party vendors and service providers; and other risks and uncertainties indicated from time to time in documents we filed or will file with the Securities and Exchange Commission (the “SEC”). In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2024. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.

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Additional Information

We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com.

We intend to use our website including our quarterly earnings presentation as a means of disclosing material non-public information, additional financial and operating metrics and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.

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Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.

We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS, or Adjusted Free Cash Flow which are included in our 2024 financial guidance above, in reliance on the “unreasonable efforts” exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income as well as Adjusted EPS to net income per share, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections.

We use the non-GAAP metrics EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage to measure our performance from period to period, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance, liquidity and leverage relative to other periods. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, earnings per share, other consolidated income, cash flow or debt data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA

We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and other transactions that management believes are not indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA, as defined, exclude some but not all items that affect our cash flow from operating activities.

Free Cash Flow

We define "Free Cash Flow" as cash flow from operations less capital expenditures.

Adjusted Free Cash Flow

We define "Adjusted Free Cash Flow" as Free Cash Flow which further excludes certain one-time and non-recurring items.

Adjusted Net Income

We define “Adjusted Net Income” as net income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses.

 

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Adjusted EPS

We define “Adjusted EPS” as Adjusted Net Income divided by the diluted weighted average shares for the period.

Adjusted EBITDA Margin

We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of total revenue.

Net Debt

We define “Net Debt” as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.

Net Leverage

We define “Net Leverage” as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end.

 

 

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(In thousands, except per share data)		June 30, 2024				December 31, 2023
Assets
Current assets:
Cash and cash equivalents		$	122,020			$	136,309
Restricted cash			3,378				3,413
Accounts receivable (net of allowance for credit losses of $21.6 million and $18.5 million at June 30, 2024 and December 31, 2023, respectively)			210,207				197,824
Unbilled receivables			44,151				37,065
Inventory			17,165				17,966
Prepaid expenses and other current assets			52,721				46,961
Total current assets			449,642				439,538
Installation and service parts, net			23,347				22,895
Property and equipment, net			133,314				123,248
Operating lease assets			30,346				33,523
Intangible assets, net			266,971				301,025
Goodwill			834,745				835,835
Other non-current assets			34,632				33,919
Total assets		$	1,772,997			$	1,789,983
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	84,888			$	78,749
Deferred revenue			26,402				28,788
Accrued liabilities			58,911				93,119
Tax receivable agreement liability, current portion			5,098				5,098
Current portion of long-term debt			—				9,019
Total current liabilities			175,299				214,773
Long-term debt, net of current portion			1,036,338				1,029,113
Operating lease liabilities, net of current portion			26,666				29,124
Tax receivable agreement liability, net of current portion			48,369				48,369
Asset retirement obligations			15,258				14,580
Deferred tax liabilities, net			16,835				18,360
Other long-term liabilities			15,605				14,197
Total liabilities			1,334,370				1,368,516
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value			—				—
Common stock, $0.0001 par value			16				17
Additional paid-in capital			556,494				557,513
Accumulated deficit			(105,881	)			(125,887	)
Accumulated other comprehensive loss			(12,002	)			(10,176	)
Total stockholders' equity			438,627				421,467
Total liabilities and stockholders' equity		$	1,772,997			$	1,789,983

 

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
(In thousands, except per share data)		2024				2023				2024				2023
Service revenue		$	212,017			$	196,050			$	414,738			$	380,748
Product sales			10,409				8,411				17,418				15,616
Total revenue			222,426				204,461				432,156				396,364
Cost of service revenue, excluding depreciation and amortization			4,641				4,338				8,946				8,568
Cost of product sales			7,848				5,962				13,134				11,345
Operating expenses			74,903				65,657				145,543				127,500
Selling, general and administrative expenses			46,343				43,205				94,514				83,218
Depreciation, amortization and (gain) loss on disposal of assets, net			27,522				29,088				54,497				59,421
Total costs and expenses			161,257				148,250				316,634				290,052
Income from operations			61,169				56,211				115,522				106,312
Interest expense, net			18,845				22,771				38,480				45,458
Change in fair value of private placement warrants			—				10,918				—				25,519
Gain on interest rate swap			(23	)			(4,805	)			(419	)			(2,007	)
Loss on extinguishment of debt			—				209				595				1,558
Other income, net			(5,245	)			(4,512	)			(9,698	)			(8,268	)
Total other expenses			13,577				24,581				28,958				62,260
Income before income taxes			47,592				31,630				86,564				44,052
Income tax provision			13,369				12,522				23,192				20,367
Net income		$	34,223			$	19,108			$	63,372			$	23,685
Other comprehensive income (loss):
Change in foreign currency translation adjustment			1,434				718				(1,826	)			628
Total comprehensive income		$	35,657			$	19,826			$	61,546			$	24,313
Net income per share:
Basic		$	0.21			$	0.13			$	0.38			$	0.16
Diluted		$	0.20			$	0.13			$	0.38			$	0.16
Weighted average shares outstanding:
Basic			166,064				151,132				166,152				150,151
Diluted			168,615				152,590				168,670				151,586

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		Three Months Ended June 30,
($ in thousands)		2024				2023
Cash Flows from Operating Activities:
Net income		$	34,223			$	19,108
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			27,465				28,996
Amortization of deferred financing costs and discounts			1,033				1,192
Change in fair value of private placement warrants			—				10,918
Change in fair value of interest rate swap			249				(5,115	)
Loss on extinguishment of debt			—				209
Credit loss expense			4,059				3,259
Deferred income taxes			(1,395	)			(2,484	)
Stock-based compensation			6,590				4,525
Other			146				126
Changes in operating assets and liabilities:
Accounts receivable			(32,191	)			(4,849	)
Unbilled receivables			(730	)			(2,656	)
Inventory			174				(235	)
Prepaid expenses and other assets			(9,757	)			(3,232	)
Deferred revenue			1,623				5,673
Accounts payable and other current liabilities			9,613				13,181
Other liabilities			(1,066	)			(5,906	)
Net cash provided by operating activities			40,036				62,710
Cash Flows from Investing Activities:
Cash receipts (payments) for interest rate swap			272				(310	)
Purchases of installation and service parts and property and equipment			(14,054	)			(11,726	)
Cash proceeds from the sale of assets			42				95
Net cash used in investing activities			(13,740	)			(11,941	)
Cash Flows from Financing Activities:
Repayment of long-term debt			(2,254	)			(12,254	)
Payment of debt issuance costs			(117	)			(148	)
Proceeds from the exercise of warrants			—				105,750
Share repurchases and retirement			(51,500	)			—
Proceeds from the exercise of stock options			285				1,689
Payment of employee tax withholding related to RSUs and PSUs vesting			(1,050	)			(502	)
Net cash (used in) provided by financing activities			(54,636	)			94,535
Effect of exchange rate changes on cash and cash equivalents			510				378
Net (decrease) increase in cash, cash equivalents and restricted cash			(27,830	)			145,682
Cash, cash equivalents and restricted cash - beginning of period			153,228				67,817
Cash, cash equivalents and restricted cash - end of period		$	125,398			$	213,499

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		Six Months Ended June 30,
($ in thousands)		2024				2023
Cash Flows from Operating Activities:
Net income		$	63,372			$	23,685
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			54,351				59,305
Amortization of deferred financing costs and discounts			2,394				2,469
Change in fair value of private placement warrants			—				25,519
Change in fair value of interest rate swap			147				(3,563	)
Loss on extinguishment of debt			595				1,558
Credit loss expense			9,306				4,956
Deferred income taxes			(699	)			(4,733	)
Stock-based compensation			12,148				7,903
Other			465				134
Changes in operating assets and liabilities:
Accounts receivable			(21,968	)			(21,071	)
Unbilled receivables			(7,231	)			(6,120	)
Inventory			653				(55	)
Prepaid expenses and other assets			(4,192	)			3,000
Deferred revenue			(2,208	)			5,768
Accounts payable and other current liabilities			(31,170	)			8,890
Other liabilities			(1,595	)			282
Net cash provided by operating activities			74,368				107,927
Cash Flows from Investing Activities:
Cash receipts (payments) for interest rate swap			566				(1,556	)
Purchases of installation and service parts and property and equipment			(28,333	)			(30,098	)
Cash proceeds from the sale of assets			90				129
Net cash used in investing activities			(27,677	)			(31,525	)
Cash Flows from Financing Activities:
Repayment of long-term debt			(4,509	)			(77,009	)
Payment of debt issuance costs			(224	)			(192	)
Proceeds from the exercise of warrants			—				105,750
Share repurchases and retirement			(51,500	)			—
Proceeds from the exercise of stock options			974				2,388
Payment of employee tax withholding related to RSUs and PSUs vesting			(5,658	)			(3,028	)
Net cash (used in) provided by financing activities			(60,917	)			27,909
Effect of exchange rate changes on cash and cash equivalents			(98	)			73
Net (decrease) increase in cash, cash equivalents and restricted cash			(14,324	)			104,384
Cash, cash equivalents and restricted cash - beginning of period			139,722				109,115
Cash, cash equivalents and restricted cash - end of period		$	125,398			$	213,499

 

 

 

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VERRA MOBILITY CORPORATION

 

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
($ in thousands)		2024				2023				2024				2023
Net income		$	34,223			$	19,108			$	63,372			$	23,685
Interest expense, net			18,845				22,771				38,480				45,458
Income tax provision			13,369				12,522				23,192				20,367
Depreciation and amortization			27,465				28,996				54,351				59,305
EBITDA			93,902				83,397				179,395				148,815
Transaction and other related expenses			113				64				1,641				332
Transformation expenses			1,569				665				1,569				724
Change in fair value of private placement warrants (i)			—				10,918				—				25,519
Gain on interest rate swap (ii)			(23	)			(4,805	)			(419	)			(2,007	)
Loss on extinguishment of debt (iii)			—				209				595				1,558
Stock-based compensation (iv)			6,590				4,525				12,148				7,903
Adjusted EBITDA		$	102,151			$	94,973			$	194,929			$	182,844
Adjusted EBITDA Margin			46	%			46	%			45	%			46	%

 

 

 

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
($ in thousands)		2024				2023				2024				2023
Net cash provided by operating activities		$	40,036			$	62,710			$	74,368			$	107,927
Purchases of installation and service parts and property and equipment			(14,054	)			(11,726	)			(28,333	)			(30,098	)
Free Cash Flow			25,982				50,984				46,035				77,829
Legal settlement			—				—				31,500				—
Income tax effect on adjustment (1)			—				—				(9,450	)			—
Adjusted Free Cash Flow		$	25,982			$	50,984			$	68,085			$	77,829

 

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RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND CALCULATION OF ADJUSTED EPS (Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
(In thousands, except per share data)		2024				2023				2024				2023
Net income		$	34,223			$	19,108			$	63,372			$	23,685
Amortization of intangibles			16,741				20,034				33,486				42,002
Transaction and other related expenses			113				64				1,641				332
Transformation expenses			1,569				665				1,569				724
Change in fair value of private placement warrants			—				10,918				—				25,519
Change in fair value of interest rate swap			249				(5,115	)			147				(3,563	)
Loss on extinguishment of debt			—				209				595				1,558
Stock-based compensation			6,590				4,525				12,148				7,903
Total adjustments before income tax effect			25,262				31,300				49,586				74,475
Income tax effect on adjustments			(7,579	)			(6,253	)			(14,697	)			(14,693	)
Total adjustments after income tax effect			17,683				25,047				34,889				59,782
Adjusted Net Income		$	51,906			$	44,155			$	98,261			$	83,467
Adjusted EPS		$	0.31			$	0.29			$	0.58			$	0.55
Diluted weighted average shares outstanding			168,615				152,590				168,670				151,586
Annual estimated effective income tax rate (1)			30	%			31	%			30	%			31	%

 

 

RECONCILIATION OF TOTAL LONG-TERM DEBT TO NET DEBT AND NET LEVERAGE (Unaudited)
 

($ in thousands)		June 30, 2024				December 31, 2023
Total long-term debt, net of current portion		$	1,036,338			$	1,029,113
Current portion of long-term debt			—				9,019
Total long-term debt			1,036,338				1,038,132
Original issue discounts			2,963				3,646
Unamortized deferred financing costs			10,777				12,809
Total long-term debt, excluding original issue discounts and unamortized deferred financing costs			1,050,078				1,054,587
Cash and cash equivalents			(122,020	)			(136,309	)
Net Debt		$	928,058			$	918,278
Net Leverage		2.4x				2.5x
Trailing twelve months adjusted EBITDA			383,587				371,502

 

 

Investor Relations Contact

Mark Zindler

mark.zindler@verramobility.com

 

 

 

 

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